Australians have turned to healthy foods during coronavirus isolation, according to analysis by Nielsen.
The crisis initally saw pantries stocked with food essentials but the latest Nielsen Homescan research shows consumers are buying a healthy shelf and fridge-friendly goods.
In the four weeks ending March 22, overall growth of the fresh produce category reached a two-year high, up 5.1% in volume compared to the same period a year ago.
This marks a break in trend from recent years with fresh produce on flat sales.
During the same period in March, many retailers withdrew promotional activity in an attempt to manage demand.
And consumers were hit with higher average prices due to supply chain challenges lingering from the bushfires and drought.
Nielsen says the rise in fresh produce sales during March is well above expectations.
Sales of fresh produce were also heavily supported by online shopping. Dollar sales for fresh produce sold online increased 37.2% in the four weeks to February 22, compared to a year ago.
But demand pushed supply chains to the limit and the e-commerce sales trend for fresh produce fell to 9.5% in the following four weeks ending March 22.
“With more time at home and less desire to frequent stores due to the risk of COVID-19 exposure, Australians are shopping for produce differently than we’ve seen in the past," says Melanie Norris, Nielsen Australia’s Fresh Industry Lead.
"Similar to consumers in North America, the latest data highlights that Australians are stocking up on fruits and vegetables that have a longer shelf-life, and in some cases, seeking produce options that are more cost-effective such as canned or frozen fruit and vegetables.
"In the month of March, both shelf-stable and frozen produce have seen unprecedented sales growth.”
The primary growth drivers were vegetables that are known to last in consumers’ pantries and fridge drawers.
While volume sales for fresh vegetables increased by 15% in the latest four weeks, it was potatoes, carrots and onions - all vegetables that store well - which contributed the most sales growth to the category.
Bananas, apples and stone fruit recorded volume growth but sales of traditional lunchbox and snackable favourites including berries, avocados and citrus, fell compared to a year ago.
Australians are gravitating to produce that can last weeks.
In the four weeks to March 22, frozen fruit recorded an all-time high for volume growth (+39.3%). Canned fruit sales jumped by 73.9%.
The average price of fruit was 7.9% higher than the same time year ago.
The same pattern can be seen for vegetables with frozen sales up by 59.8%, while canned vegetables increased by 118.5%.
“Over the next few months, retailers and brands could consider finding new ways to inspire consumers to use the fruit and vegetable options they are purchasing," says Norris.
"Recipe ideas using longer-lasting vegetables with stockpiled pantry items, or creative ways to use frozen and canned produce could help to drive consumption.
"Working with smaller outlets to provide home delivery options may also assist in facilitating produce purchases for those who are homebound and unable to make it out to their local store.
“Learnings from China suggest that online shopping for fresh foods will only continue to rise in importance. From a retail perspective, much will need to be done to build the supply chains to meet future omnichannel food demands."
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